By Cristal Cody
Tupelo, Miss., Nov. 3 – Morgan Stanley Investment Management Inc. subsidiary MS 522 CLO Manager LLC priced $404 million of notes due Oct. 23, 2033 in the 522 Funding CLO 2020-6 Ltd./522 Funding CLO 2020-6 LLC transaction that closed on Tuesday, according to market sources.
The CLO sold $256 million of class A floating-rate notes at Libor plus 134 basis points and $48 million of class B floating-rate notes at Libor plus 180 bps.
522 Funding CLO also priced $26 million of class C deferrable floating-rate notes at Libor plus 250 bps, $22 million of class D deferrable floating-rate notes at Libor plus 385 bps, $12 million of class E deferrable floating-rate notes at Libor plus 733 bps and $40 million of subordinated notes.
Morgan Stanley & Co. LLC was the placement agent.
MS 522 CLO Manager will manage the CLO.
The CLO has a one-year non-call period and a three-year reinvestment period.
The offering is backed primarily by broadly syndicated first-lien senior secured loans.
The deal is the company’s first CLO of 2020.
Morgan Stanley Investment Management is a New York-based capital manager and subsidiary of financial products and services company Morgan Stanley.
| Issuer: | 522 Funding CLO 2020-6 Ltd./522 Funding CLO 2020-6 LLC
|
| Amount: | $404 million
|
| Maturity: | Oct. 23, 2033
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Morgan Stanley & Co. LLC
|
| Manager: | MS 522 CLO Manager LLC
|
| Call feature: | One year
|
| Settlement date: | Nov. 3
|
|
|
| Class A notes
|
| Amount: | $256 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 134 bps
|
| Ratings: | S&P: AAA
|
|
|
| Class B notes
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| Amount: | $48 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 180 bps
|
| Ratings: | S&P: AA
|
|
|
| Class C notes
|
| Amount: | $26 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 250 bps
|
| Ratings: | S&P: A
|
|
|
| Class D notes
|
| Amount: | $22 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 385 bps
|
| Ratings: | S&P: BBB-
|
|
|
| Class E notes
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| Amount: | $12 million
|
| Securities: | Deferrable floating-rate notes
|
| Coupon: | Libor plus 733 bps
|
| Ratings: | S&P: BB-
|
|
|
| Equity
|
| Amount: | $40 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
|
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